Daily Market Commentary: Partial Recovery
Buyers stepped in to eat some of yesterday's losses but it wasn't enough to reverse the course of the selling. None of the indices 20-day MAs were breached to the upside, meaning shorts will still have their opportunity to attack tomorrow.
The Nasdaq is best primed for a short attack. Today finished just below the 20-day MA as the breakdown gap was closed. Today's modest buying did enough to reverse yesterday's 'sell' trigger for on-balance-volume.
The semiconductor index enjoyed the best of the buying as bulls stepped in at the 50-day MA. But the buying wasn't enough to stop a net bearish turn in technicals for the index. However, there should be significant support around 400 if the 50-day MA fails.
The S&P didn't quite make it to its 20-day MA. Technicals are relatively unchanged from yesterday: The earlier 'bear' triggers for the MACD and +DI/-DI intensified their decline, but there were no new technical 'sell' triggers
The Russell 2000 was able to attract buyers at its 50-day MA. Short term traders may have enough to see a rally to test its 20-day MA with 814 resistance an alternative target.
Thursday will test the resolve of buyers following today's buying. The proximity of 20-day MAs will offer shorts an opportunity to build positions. Small Caps and Semiconductors offer the most room to house a rally - but will bulls want to take the opportunity?
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
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The Nasdaq is best primed for a short attack. Today finished just below the 20-day MA as the breakdown gap was closed. Today's modest buying did enough to reverse yesterday's 'sell' trigger for on-balance-volume.
The semiconductor index enjoyed the best of the buying as bulls stepped in at the 50-day MA. But the buying wasn't enough to stop a net bearish turn in technicals for the index. However, there should be significant support around 400 if the 50-day MA fails.
The Russell 2000 was able to attract buyers at its 50-day MA. Short term traders may have enough to see a rally to test its 20-day MA with 814 resistance an alternative target.
Thursday will test the resolve of buyers following today's buying. The proximity of 20-day MAs will offer shorts an opportunity to build positions. Small Caps and Semiconductors offer the most room to house a rally - but will bulls want to take the opportunity?
----
Follow Me on Twitter
Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
Zignals offers a full suite of FREE financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own strategy and sell it in the MarketPlace to earn real cash.
You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!
